Contents

Introduction

This guide contains information about issues to consider before starting a farming operation with links to full-text guides on how to start a farm business and develop business and marketing plans. It also contains information about funding programs for beginning and experienced farmers, technical assistance contacts, disaster assistance, and organizations with resources. If you are just starting out you may also want to consult the New Farmers website, of the U.S. Department of Agriculture: https://newfarmers.usda.gov/ and the New Farmers Discovery Tool: https://newfarmers.usda.gov/discovery

The use of trade, firm, or corporation names in this publication (or page) is for the information and convenience of the reader. Such use does not constitute an official endorsement or approval by the United States Department of Agriculture or the Agricultural Research Service of any product or service to the exclusion of others that maybe suitable.

7. Starting or Diversifying an Agricultural Business. Prepared by Lynn F. Kime and Sarah A. Roth, extension associates in agricultural economics; and Jayson K. Harper, professor of agricultural economics. This publication was developed by the Small-scale and Part-time Farming Project at Penn State with support from the U.S. Department of Agriculture-Extension Service. Additional financial support for this publication was provided by the Risk Management Agency of the United States Department of Agriculture and the Pennsylvania Department of Agriculture. 2004 - UPDATED: AUGUST 14, 2017. 6p. https://extension.psu.edu/starting-or-diversifying-an-agricultural-business

Contacts for Technical Assistance: Both SBA and USDA provide small business planning technical assistance and USDA also provides technical farming specifics through the extensive network of USDA, Cooperative Extension Service (CES) specialists:

Funding and Program Assistance

State Programs You may want to start your financial assistance search with your state Department of Agriculture to see if your state has a Beginning Farmer Loan Program or other type of grants or loans for farming and ranching.

Farm Banks: The nation's farm banks (defined by the Federal Reserve Board as banks that have above average proportions of farm real estate and production loans in their loan portfolios) offer a variety of loans to small and large farms and agribusiness firms; they also handle many of the loans made under USDAs guaranteed farm loan programs.

American Bankers Association: Agriculture Banking. ABA has a "special section dedicated to providing advocacy, information, training, education, and public relations for banks that make and service agricultural loans or provide credit and other financial services to those living and working in rural America for nearly 100 years." https://www.aba.com/tools/function/ag/Pages/default.aspx

Farm Credit System (FCS): The FCS is a network of federally chartered borrower-owned lending institutions and related service organizations that specialize in providing credit and related services to farmers (also young and beginning), ranchers, and producers or harvesters of aquatic products. Additional information about the FCS is available from the Farm Credit Administration at https://www.fca.gov/info/ybs.html​